Barber Shops need business insurance just as every other business, no matter the industry, does. Business insurance is a financial safety net that can help with unexpected costs that can occur as results of lawsuits and claims of physical injuries and unsatisfied customers.
Barbershop coverage is quite different in terms of the cover that the insurance policies offer. These differences are necessary as, in many ways, barbershops are similar to any other small business, and there are certain risks that are unique to barbershops.
Property Insurance
Protecting your business premises and equipment is important for any small business, even for a barbershop. That’s where business property coverage comes in. This type of coverage, also known as property insurance, helps protect your shop, whether you own or rent.
If they’re damaged, destroyed, or stolen, business property policy can help cover the costs to replace or repair your:
- Personal property you store inside your shop
- Tools and equipment
- Inventory stores at your shop
- Barbershop furniture
- Computers your use to run your business
- Accounts receivable and other important documents
- Outdoor landscaping, like fences
Liability Insurance
All businesses, regardless of industry, face risks that should be covered by a liability insurance policy. Worst case scenario, you have general liability insurance to cover you from a wide range of incidents. Some insurance agents will recommend you barbershop insurance which generally covers the same claims as a small business insurance but with additional features.
Risk is no stranger in an environment like a barbershop. With free access to electrical equipment and sharp blades, there’s always something to worry about. On the wrong hand, common barbershop equipment can do significant damage. Some common physical injuries are:
- Burns from dryers and irons
- Cuts from scissors and razor blades
- Scalding from hot water
- Hair loss from barber mistakes
- Viruses from other clients
- Barber’s itch/barber’s rash
Legal Expenses Insurance
Small businesses purchase legal expenses insurance to cover legal costs they might experience while pursuing disputes about:
- Contract for services and goods
- Personal Injury
- Property
- Employment
It’s still possible to purchase standalone legal expenses insurance, but some policies are to be found in the standard business insurance or home insurance as an optional extra.
Coverages obtained “before the event” will protect your business in case legal action has to be fought or defended in the future.
Standard business insurance and barbershop insurance- The difference
There are a number of differences when it comes to the coverage provided by a barbershop insurance policy and a standard business insurance policy.
The standard business insurance coverage will only pay for a compensation claim that involves either damage or injuries to property. In contrast, the barbershop policy also includes a financial loss extension, meaning that a claim for a purely economic loss will also be covered by the plan. .
What’s more, a general business liability coverage does not pay for the claims arising as a result of professional services. A general business insurance plan does also not include compensation claims arising from the provision of barbering services. The barbershop policy should only include a treatment risk extension to cover those claims.
